diff --git a/README.md b/README.md
index f4c9c36..9a38563 100644
--- a/README.md
+++ b/README.md
@@ -118,7 +118,7 @@ The web UI is on `http://127.0.0.1:8070/` (see `listen` in
 
 ## Status
 
-Housecarl 0.1.0 is released: zones, address sets and
+Housecarl 0.1.1 is in testing (0.1.1-rc.1): zones, address sets and
 services with ordered rules, IPv4 and IPv6, port forwards with hairpin NAT
 and IPv6 pinholes, source NAT and redirects, built-ins, probation for
 network changes (confirmed by the client that made them), the ruleset
diff --git a/VERSION b/VERSION
index 6e8bf73..35fd223 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-0.1.0
+0.1.1-rc.1